Concept:Excise tax is an internal indirect tax levied on goods produced within the country.
Explanation:Excise tax is imposed on the manufacture or production of certain goods inside the country.
Goods like alcohol, fuel, and tobacco are typical examples of products that attract excise duty.
It is an indirect tax because the producer or supplier pays it first, then includes it in the selling price.
The consumer ultimately bears the tax burden when purchasing the product.
It is different from customs duty, which applies to imported or exported goods.
Goods smuggled into the country illegally or seized by customs officials are not subject to excise tax.
Thus, excise tax applies specifically to locally manufactured goods.
Answer:B. manufactured locally